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GAMING NEWS

38 Studios Fires Back At Rhode Island's Comments

Posted on Tuesday, May 29 @ 10:23:34 Eastern by Keri_Honea

I had a nice Memorial Day weekend, but it doesn't sound like the people at 38 Studios had any fun over the holiday. They had to close down Big Huge Games, lay off several people, tell several others that they're now responsible for their second mortgages, and the punches keep coming.

For instance, it was reported that there will not be patch for Kingdoms of Amalur: Recknoning, "barring some sort of miracle." Later, 38 Studios had to admit that there was a sequel to Reckoning in the works, which has been effectively scrapped since there are no employees to work on it.

The executives at 38 Studios aren't lying back and taking it. Instead, they're implementing one of the oldest stand-bys for business in the book: the blame game.

Curt Schilling stepped up to the plate first, explaining that he invested $50 million of his own money into 38 Studios, all of which he will lose if the studio collapses. He followed that with spouting his frustrations with the Rhode Island governor, Lincoln Chafee, saying that he has virtually sabotaged the company's chances of ever getting private investors thanks to his public comments. He futher expounged on the issue by accusing Chafee of scaring off an unnamed publisher from producing the Reckoning sequel. According to Schilling, the project was expecting a $35 million investment from the publisher.

Schilling wasn't alone. Former creative director for 38 Studios, Steve Danuser, told NECN that Chafee turned his back on them when they needed his help the most.

"We just needed a little more help, and we thought the state would have our backs on that," he said. "We thought the governor was an ally. It didn't turn out that way.

"The governor has turned his back on a lot of taxpaying Rhode Island citizens who work here, and it's unfortunate because we had a lot of great people who wanted to contribute to Rhode Island and now they can't," he continued. "Why did you [Chafee] do it? Why didn't you help us? He [Chafee] said a lot of things, he's broken confidentiality. He done a lot of things to materially hurt us and I don't understand it."

I definitely believe that both sides need to share in this bowl of blame, but I also can't help but think that this is such a great model for why government should never get involved with business. 38 Studios might have failed even if they stayed in Massachusetts, but regardless, bringing 38 Studios to Rhode Island with taxpayer money was never a good idea from the start.
Tags:   38 Studios


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Comments
  • ShadeTail
    ShadeTail

    Joined: Nov 2006
    Posted: May 29th, 2012 at 10:46 am
    ["I definitely believe that both sides need to share in this bowl of blame, but I also can't help but think that this is such a great model for why government should never get involved with business. 38 Studios might have failed even if they stayed in Massachusetts, but regardless, bringing 38 Studios to Rhode Island with taxpayer money was never a good idea from the start."]

    This paragraph is a huge problem. Kurt Schilling went to the Rhode Island state house with his hat in hand because he knew they would be willing to give him favorable terms. And why shouldn't they? States have every incentive to lure businesses into their borders, particularly in this economy with its high unemployment rate. More employers means more people employed.

    And make no mistake, that bond-backed loan wasn't a gift. Rhode Island was investing that money, and like any investor, they had the right to expect to be repaid.

    So Schilling tried to play the system and failed. That's on him, not on Rhode Island.
  • Bras
    Bras

    Joined: Jul 2008
    Posted: May 29th, 2012 at 11:00 am
    Can someone tell me why Kingdoms of Amalur was such a financial failure?
  • thedarkstar
    thedarkstar

    Joined: Feb 2011
    Posted: May 29th, 2012 at 11:12 am
    I don't think it really was. Selling 1.2 million copies of a brand new franchise does not constitute failure in my opinion. The issue was that they were banking on it selling at LEAST 3 million copies. To compare, Gears of War 3, a already established franchise, sold around that after 15 weeks of release.

    I think they just had far to high expectations that there was very little chance of them ever meeting.
  • Bras
    Bras

    Joined: Jul 2008
    Posted: May 29th, 2012 at 12:19 pm
    Thank you! 3 Million is an ambitious goal indeed.
  • thedarkstar
    thedarkstar

    Joined: Feb 2011
    Posted: May 29th, 2012 at 12:23 pm
    You're welcome!
  • TheJx4
    TheJx4

    Joined: Jun 2011
    Posted: May 29th, 2012 at 3:43 pm
    I thought Gears sold that within a month...
  • thedarkstar
    thedarkstar

    Joined: Feb 2011
    Posted: May 29th, 2012 at 8:54 pm
    You are right. Weird, the site I went to for that data was obviously wrong. It sold 3 million in the first week. I may have been looking at a site that counted only US sales figures. Either way, the comparison is still valid.
  • danielrbischoff
    danielrbischoff

    Joined: Nov 2009
    Posted: May 29th, 2012 at 2:06 pm
    I think everyone involved has handled this situation very poorly.
  • drathbone
    drathbone

    Joined: May 2011
    Posted: May 29th, 2012 at 7:34 pm
    Clearly the next move for financial success is to make an MMO.

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